"When historians eventually study whom Donald Trump treated worse-his enemies or his friends and loyal servants-the sad case of Jerome Powell will weigh heavily on the scales. Not only did Trump discharge the usual fusillade of schoolyard insults and infantile tantrums at the man he appointed chair of the Federal Reserve Board; as the world now knows, Trump's Department of Justice has also opened a spurious criminal investigation of Powell for allegedly making false statements to Congress about a cost overrun in a construction project."
"Jonathan Chait: Banana republicanism Yet Powell's case is distinct because he-more than any other top-level civil servant-helped secure the most significant policy triumph of Trump's career. He even played a crucial part in Trump's eventual reelection. During the Obama years, after the mortgage bust, Ben Bernanke and the Fed kept the short-term interest rate close to zero, setting the stage for Powell's role in the Trump economy."
"Under Powell, the Fed gradually hiked the rate to 2.5 percent and then pulled back. Trump squawked and mused about firing Powell. Trump's carping notwithstanding, economic growth spiked during Powell's first year to 3 percent, the highest since the mid-2000s, and wages rose at the fastest rate since before the financial crisis. Growth remained a still-strong 2.6 percent in 2019. And thanks to Powell's refusal to cave to the president, inflation remained muted."
Donald Trump publicly insulted Jerome Powell and the Justice Department opened a criminal investigation into Powell for allegedly making false statements to Congress about a construction cost overrun. Trump applied similar punitive tactics to other former aides, including John Bolton and Mike Pence. Powell, appointed chair of the Federal Reserve, played a significant role in producing strong economic performance that supported Trump's presidency and reelection prospects. After Bernanke-era low rates, Powell raised the federal funds rate to about 2.5 percent and later eased. Economic growth rose to 3 percent in Powell's first year, wages increased notably, growth was 2.6 percent in 2019, and inflation remained muted.
Read at The Atlantic
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